4:1 Bonus + 9,000% Dividend In November: BSE Vs NSE; Who Has The Biggest Bonus Shares, Dividend Rewards?

Bonus Issue: The leading stock exchange NSE has fixed the record date for its upcoming bonus issue in the ratio 4:1. The exchange's bonus issue will be ahead of its final dividend payout of whopping 9,000% for FY24. That being said, is the latest double rewards bigger than NSE's counterpart BSE whose mainboard is Sensex. Nifty 50 is the mainboard of trading on the NSE.

Let's Find Out Who Has The Biggest Bonus Issues And Dividends Offering: BSE Vs NSE!

Bonus Issues:

NSE has fixed Saturday, November 2, 2024, as the record date to determine the eligible equity shareholders of the company for its bonus issue.

The 4:1 bonus shares mean that NSE will allot 4 (Four) fully paid-up bonus equity shares of Re. 1/- (Rupee One) each for every 1 (One) fully paid-up equity share of Re. 1/- (Rupee One) each held to the shareholders of the Company holding shares on the Record Date (to be determined by the Board).

The upcoming bonus issue of NSE is bigger than BSE's bonus issue.

BSE has delivered only one bonus issue since its listing on NSE. The stock turned ex-bonus on March 21, 2022, for a bonus issue of 2:1. Simply put, BSE rewarded investors with 2 new bonus shares on their existing 1 equity.

Dividends:

Apart from the bonus issue, NSE is also set to deliver a massive 9,000% final dividend worth Rs 90 per share for FY24.

It said, the final dividend, if approved, by Shareholders at the ensuing AGM, will be paid to the eligible shareholders on or before the 30th day from the date of the Annual General Meeting. For dividends, the paid-up share capital before the issue of Bonus Shares would be considered.

Once again, NSE outruns BSE in dividend payout as well. For FY24, BSE delivered a 750% dividend worth Rs 15 per share which was final for FY24. This is higher compared to BSE's dividend payout of 600% valuing to Rs 12 per share for FY23.

NSE IPO:

Unlike BSE, NSE is not listed and hence their stock price performances could not be compared. However, NSE is looking to list soon as it has filed a draft prospectus for launching an initial public offering (IPO).

Earlier this month, some reports stated NSE's board of directors are likely to once again seek market regulator Sebi's no-objection certificate (NOC) for its IPO.

NSE's IPO has been kept off the shelves due to regulatory issues and also reportedly an ongoing co-location case.

NSE first filed its draft for IPO in 2016, however, the market watchdog returned the public offer back in 2019. While not providing NoC to the IPO, Sebi directed NSE to first address its co-location case.

The NSE co-location scam relates to the market manipulation at the National Stock Exchange of India, India's leading stock exchange. Allegedly select players obtained market price information ahead of the rest of the market, enabling them to front run the rest of the market, possibly breaching the NSE's purpose of demutualisation exchange governance and its robust transparency-based mechanism. The alleged connivance of insiders by rigging NSE's algo-trading and use of co-located servers ensured substantial profits to a set of brokers. This widespread market fraud came to light when the markets' regulator, the Securities and Exchange Board of India (SEBI), received the first anonymous complaint through a whistle-blower's letter in January 2015, as per Wikipedia.

If NSE gets a clean chit from Sebi in its reportedly second attempt, then chances are that the exchange will be launching the biggest-ever IPO worth Rs 30,000 crore. This could be bigger than the upcoming IPO of Rs 25,000 crore by the South Korean company, Hyundai. Currently, LIC holds the title of the biggest-ever IPO worth Rs 21,008.48 crore which was carried out in May 2022.